Why does avalanche save more money?

Targeting high-interest debt first reduces the principal that high-rate interest compounds on. On $30,000 across credit cards, avalanche can save $2,000-$8,000 in interest vs snowball.

What if the highest-rate debt is also the largest?

Avalanche still wins mathematically. If motivation is an issue, consider a hybrid: pay off one small balance first for a win, then switch to avalanche order.

Should I include my mortgage in the avalanche?

Generally no. Mortgage rates are typically low, interest is tax-deductible, and prepaying mortgage has an opportunity cost if you could invest at higher returns.

Debt Avalanche Payoff Calculator

Order debts by highest interest rate first and calculate payoff timeline. Minimizes total interest paid compared to snowball method.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Order debts by highest interest rate first and calculate payoff timeline. Minimizes total interest paid compared to snowball method. Use the debt avalanche result to inform your calculation.

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Debt Avalanche Payoff Calculator

How to Use

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Frequently Asked Questions

Why does avalanche save more money?

What if the highest-rate debt is also the largest?

Should I include my mortgage in the avalanche?